The Standard Register Company (SR, Financial) filed Quarterly Report for the period ended 2010-07-04.
The Standard Register Company has a market cap of $95.9 million; its shares were traded at around $3.32 with a P/E ratio of 17.47 and P/S ratio of 0.14. The dividend yield of The Standard Register Company stocks is 6.02%.
For the second quarter, our net loss was almost break-even, which combined with our first quarter loss resulted in a year-to-date loss of $0.9 million, or $0.03 per share compared to a year-to-date net loss of $7.8 million, or $0.27 per share in 2009. We had no pension settlement charges in 2010, compared to $19.7 million in the first half of 2009. On a per share basis, the pension settlements represented a loss of $0.41 per share.
Cash flow on a net debt basis was a negative $10.9 million compared to a positive $0.3 million in the first half of 2009. The decrease was primarily attributable to the acquisition of Fusion Graphics, Inc. and increased working capital requirements due to the timing of our quarter end.
As shown in the following table, total SG&A expense increased by $4.5 million in the first half of 2010 as compared with 2009. Selling and sales support declined $1.3 million. Our cost reduction initiatives reduced compensation-related expenses by $1.7 million. Product management costs on key priority solutions, new deal support costs in client satisfaction, and business development costs were higher by approximately $1.4 million as we continued implementing our go-to-market strategy. However, these increases were partially offset by cost reductions of approximately $1.0 million, primarily in communication service costs and facility costs. Reductions in communication service costs were enabled in large part by the increased infrastructure investments reported in general and administrative expenses. Other cost reductions resulted from our restructuring and MyC3 cost reduction initiatives.
General and administrative expenses increased $5.2 million. Increases in planned technology spending on system infrastructure projects accounted for approximately $3.7 million of the increase, of which approximately $2.4 million was focused on advancing our client-facing technology through SMARTworks®. Deferred compensation costs were also higher by approximately $0.9 million as compared to 2009, due to one-time death benefits received in 2009 that were not received in 2010 and lower investment earnings. Additionally, incentive compensation increased approximately $1.6 million. These increases were offset partially by sales tax refunds of approximately $1 million.
In 2009, we initiated a restructuring plan as a result of the MyC3 initiative. During the first half of 2010, we continued implementing this plan, as well as other cost reduction and revenue growth initiatives generated from the MyC3 process. Implementation of the restructuring plan and other initiatives will continue through 2011, and we are currently on track to realize all of the projected net savings of $30 to $40 million annually, once completed.
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The Standard Register Company has a market cap of $95.9 million; its shares were traded at around $3.32 with a P/E ratio of 17.47 and P/S ratio of 0.14. The dividend yield of The Standard Register Company stocks is 6.02%.
Highlight of Business Operations:
The amount of compensation expense recognized under these arrangements is dependent on the total amount of performance-based shares we expect to vest and the expected achievement level of performance goals. This requires us to evaluate the probability of achieving the annual performance goals and assess the level of goal achievement each quarter. We are currently accruing expense based upon achieving performance sufficient to earn 100% of the performance-based shares. Total expense over the three-year vest period for these awards would be approximately $1.4 million at this performance level, of which $0.1 million has been accrued. For the incentive plan, we are currently accruing expense based upon achieving performance sufficient to earn awards in the amount of $3.2 million for 2010, of which $1.6 million has been accrued. The actual amount of compensation expense recorded in future periods is subject to adjustment based on changes in our expectations and the actual level of achievement of the performance goals.For the second quarter, our net loss was almost break-even, which combined with our first quarter loss resulted in a year-to-date loss of $0.9 million, or $0.03 per share compared to a year-to-date net loss of $7.8 million, or $0.27 per share in 2009. We had no pension settlement charges in 2010, compared to $19.7 million in the first half of 2009. On a per share basis, the pension settlements represented a loss of $0.41 per share.
Cash flow on a net debt basis was a negative $10.9 million compared to a positive $0.3 million in the first half of 2009. The decrease was primarily attributable to the acquisition of Fusion Graphics, Inc. and increased working capital requirements due to the timing of our quarter end.
As shown in the following table, total SG&A expense increased by $4.5 million in the first half of 2010 as compared with 2009. Selling and sales support declined $1.3 million. Our cost reduction initiatives reduced compensation-related expenses by $1.7 million. Product management costs on key priority solutions, new deal support costs in client satisfaction, and business development costs were higher by approximately $1.4 million as we continued implementing our go-to-market strategy. However, these increases were partially offset by cost reductions of approximately $1.0 million, primarily in communication service costs and facility costs. Reductions in communication service costs were enabled in large part by the increased infrastructure investments reported in general and administrative expenses. Other cost reductions resulted from our restructuring and MyC3 cost reduction initiatives.
General and administrative expenses increased $5.2 million. Increases in planned technology spending on system infrastructure projects accounted for approximately $3.7 million of the increase, of which approximately $2.4 million was focused on advancing our client-facing technology through SMARTworks®. Deferred compensation costs were also higher by approximately $0.9 million as compared to 2009, due to one-time death benefits received in 2009 that were not received in 2010 and lower investment earnings. Additionally, incentive compensation increased approximately $1.6 million. These increases were offset partially by sales tax refunds of approximately $1 million.
In 2009, we initiated a restructuring plan as a result of the MyC3 initiative. During the first half of 2010, we continued implementing this plan, as well as other cost reduction and revenue growth initiatives generated from the MyC3 process. Implementation of the restructuring plan and other initiatives will continue through 2011, and we are currently on track to realize all of the projected net savings of $30 to $40 million annually, once completed.
Read the The complete Report
